It’s that time of year when most business owners make decisions about employee bonuses. An employee bonus is a means for the employer to express appreciation for good work behavior and performance. It is intended to instill pride among employees, to raise morale, and to encourage others to do good work.
Let’s get one thing straight. Your staff is not a 2nd grade soccer team and as such not everyone might be getting a trophy.
Here are just a few of the questions about employee bonuses we get this time of year:
Should everyone get a bonus?
If everyone doesn’t, will that lead to morale problems among other employees who feel they deserve some of the credit?
How do I single out an employee for a bonus (who deserves it), but do nothing for my other employees (who don’t deserve it)?
Should I tie the bonuses to expectations?
How honest should I be?
Lindsay Broder from Entrepreneur wrote a great article about employee bonuses that answers these questions and a few more.
Keep in mind that a supervisor who neglects to acknowledge excellence is losing out on a great tool to motivate and keep good employees, and encourage other employees to be better. Too often treating everyone the same results in everyone rising to the lowest common denominator.